The much-anticipated rollout of global tariffs announced recently by the Trump Administration has left businesses scrambling to adapt — and is creating major challenges for Chief Supply Chain Officers (CSCOs).
“With U.S. President Trump’s renewed focus on tariffs and protectionist policies, particularly aimed at China, CSCOs are experiencing significant trade flow disruptions and increased business costs — and these developments add yet another complex layer of challenges to the role,” according to a recent report from global consulting firm Egon Zehnder.
In addition to trade disruptions, the firm says technological advancements and climate change are adding fuel to the “perfect storm” CSCOs face.
As one survey respondent explained, “Flexibility and resilience in supply chain design have never been more critical.”
But in the midst of anticipated tariff-induced volatility, perhaps there’s a silver lining.
Gartner experts say that when approached strategically, the current environment could provide new opportunities, too.
Chain Reaction 2025: Chief Supply Chain Officer Insights
In collaboration with Executive Education at Imperial College Business School, Egon Zehnder surveyed 68 CSCOs across industries and regions to better understand the evolution of supply chain roles and responsibilities.
Findings revealed that the CSCO role is becoming “increasingly sophisticated with a myriad of competing priorities demanding their attention” — and that despite the geopolitical shifts on the horizon, just 15% of respondents felt “moderately prepared for their impact.”
In the report’s key findings:
- Cost pressure was identified as one of the biggest challenges, with 72% of CSCOs identifying it as such. Additional concerns included “evolving customer demands” (46%) and “driving operational efficiency” (40%). The report noted that the “global footprint” of companies makes things even more complex.
- Strategic priorities include “managing stakeholder expectations” (38%) — including “board and shareholder relations” (31%), and “driving cultural change” (29%). Just 26% of respondents consider “anticipating and adapting to future trends” as a key strategic priority — and only 12% are “currently dedicating time to this area.”
- Essential leadership qualities for CSCOs include “building and leading high-performing teams” (56%), “formulating a clear vision and strategy” (50%), and “delivering superior performance” (37%).
- To deal with future challenges, CSCOs want support in “enhancing their capabilities in anticipating future trends” (41%), “managing digital transformation” (37%), and “recruiting and developing top talent” (24%).
- The primary motivation for 81% of respondents is “driving transformation or turnaround initiatives,” followed by “tackling complex challenges” (57%) and “achieving career or personal growth” (51%).
- The top technologies having an impact on CSCOs’ businesses include AI/machine learning, cybersecurity, and cloud services. “These technologies are expected to remain critical over the next five years, with increasing focus on blockchain and chatbots/virtual assistants,” the report said.
In light of those findings, CSCOs will be especially challenged in the midst of the current era of tariff volatility — which some experts say may include a silver lining.
The benefits of taking a long view of tariff volatility
Although the new tariffs have many executives sweating, global consulting firm Gartner says that when tackled strategically, supply chain organizations can “use tariff volatility to drive competitive advantage.”
“Enterprises should recognize tariff volatility as a multiyear, dynamic event,” says Suzie Petrusic, Senior Director Analyst in Gartner’s Supply Chain practice. “Chief supply chain officers (CSCOs) who recognize this reality should continually evaluate opportunities to invest in strengthening their operations and attract outside investments from geopolitical actors and ecosystem partners.”
Although there are still a lot of unknowns, Gartner experts underscore the need to respond in a timely manner to the tariffs — not too early and not too late.
“CSCOs who anticipate that current tariff volatility will persist for years, rather than months, should also recognize that their business operations will not emerge successful by remaining static or purely on the defensive,” explains Brian Whitlock, Senior Research Director in Gartner’s Supply Chain practice.
“The long-term winners will reinvent or reinvigorate their business strategies, developing new capabilities that drive competitive advantage,” he adds. “In almost all cases, this will require material business investment and should be a focal point of current scenario planning.”
5 strategies to capitalize on tariff volatility
To help organizations respond to tariff volatility within their “own distinct operating realities,” Gartner has identified five possible pathways for CSCOs and other executive leaders to consider:
- Retire
- Renovate
- Rebalance
- Reinvent
- Reinvigorate
Retire
“Tariff volatility will stress some specific products, or even organizations, to a breaking point,” Gartner says, noting that either passing costs on to customers or absorbing them may not be an option.
“In these cases, enterprises are faced with assessing the costs associated with adjusting the product to maintain viability or accepting that worsening geopolitical conditions should force the retirement of the product,” the firm explains.
Renovate
“New tariffs could prompt renovations (adjustments) to products that were overdue,” Gartner notes. “In other cases, CSCOs and their business partners will need to take a hard look at the viability of raising or absorbing costs in a still price-sensitive environment.”
The firm says determining the best approach will depend upon how important the product is within the organization’s portfolio.
Rebalance
“Early winners and losers from initial tariff policies must both be prepared for potential countermeasures, policy escalations and de-escalations, and competitor responses,” Gartner explains. “Early deviations from the baseline should not automatically be accepted as the new normal, and additional volatility should be factored into future demand planning.”
Reinvent
With persistent tariff volatility, Gartner says companies have a few options:
- Evaluate “opportunities to invest in new projects in markets that are not impacted or that potentially align with new geopolitical incentives.”
- Pivot and “repurpose existing facilities to serve local markets,” if those opportunities emerge.
“Enterprises looking to reinvent should carefully consider when to implement such a move and whether the potential for policy escalation or de-escalation would necessitate a different approach,” the firm notes.
Reinvigorate
Gartner says, “early winners of announced tariffs” should look for more opportunities to “extend competitive advantages.”
“For example, they could look to expand existing US-based or domestic manufacturing capacity or reposition themselves within the market by lowering their prices to take market share and drive business growth,” the firm notes. “If executive leaders can entice ecosystem partners or other major actors to support or invest in their efforts, these benefits could be further solidified.”
“Tariff volatility is not just a hurdle; it can be a launchpad,” says Whitlock in a separate Gartner post. “For CSCOs willing to embrace change and think strategically, it’s a chance to rethink and define their organizations’ places in the market. By turning risk into reward, you can not only survive the tariff volatility but thrive in it, emerging stronger and more competitive than ever before.”
